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The Australian dollar has declined even further since that was written as has gold, but gold in Australian dollars was $1,158 when I checked a short time ago.
Our dollar may go down below 60c making our resource companies even cheaper for those with American dollars.
As he points out it is very difficult to forecast anything in this wild market.
What would be interesting would be to see an even greater divergence between the gold price and the Australian dollar.
It would be interesting to see the effect on the share price of our gold companies with gold consistently above $A1,200, perhaps even as high as $1,300.
If China is indeed converting some of its huge holdings of US dollars into gold, which would be a very wise thing to do with gold at these prices in US dollars, then we could surely expect to see gold heading towards $US800 again soon.
